Discovery Limited's (JSE:DSY) CEO Looks Due For A Compensation Raise

Key Insights

• Discovery's Annual General Meeting to take place on 21st of November
• CEO Adrian Gore's total compensation includes salary of R8.44m
• The overall pay is 60% below the industry average
• Discovery's total shareholder return over the past three years was 34% while its EPS grew by 31% over the past three years

The solid performance at Discovery Limited (JSE:DSY) has been impressive and shareholders will probably be pleased to know that CEO Adrian Gore has delivered. At the upcoming AGM on 21st of November, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Discovery

Comparing Discovery Limited's CEO Compensation With The Industry

According to our data, Discovery Limited has a market capitalization of R126b, and paid its CEO total annual compensation worth R31m over the year to June 2024. We note that's an increase of 10% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at R8.4m.

On comparing similar companies from the South African Insurance industry with market caps ranging from R73b to R219b, we found that the median CEO total compensation was R76m. This suggests that Adrian Gore is paid below the industry median. Moreover, Adrian Gore also holds R17b worth of Discovery stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	R8.4m	R8.0m	27%
Other	R22m	R20m	73%
Total Compensation	R31m	R28m	100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Discovery sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Discovery Limited's Growth

Over the past three years, Discovery Limited has seen its earnings per share (EPS) grow by 31% per year. It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Discovery Limited Been A Good Investment?

Boasting a total shareholder return of 34% over three years, Discovery Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Discovery that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.